A new growth model for the European neighbourhood

London

MORE than 10 years after the global financial crisis, the world economy is finally enjoying a broad-based recovery. Europe and its broader neighbourhood are no exception: economic growth in almost every country in central and eastern Europe, central Asia, the Middle East and North Africa, as well as in Russia and Turkey, has accelerated in the last year, and is projected to remain robust.

Yet, new challenges loom. If not addressed, these regions' prospects will dim. As the new Transition Report of the European Bank for Reconstruction and Development (EBRD) shows, before the great recession, the countries of Europe and its broader neighbourhood were outperforming comparable emerging economies elsewhere. In recent years, however, the tables have turned - and the gap is growing.